Great Quest Metals Ltd. (GQ:TSX.V) has entered into a definitive agreement to acquire all outstanding shares of Lotus Gold Corp. in a share-based transaction, effectively executing a reverse takeover under the TSX Venture Exchange policies. Following the completion of the court-approved plan of arrangement, Lotus will become a wholly owned subsidiary of Great Quest, and Lotus shareholders will hold 63.3 percent of the resulting issuer. Great Quest shareholders will retain the remaining 36.7 percent.
The deal is contingent on multiple approvals, including those of the Supreme Court of British Columbia, the TSX Venture Exchange, and shareholders from both companies. In connection with the arrangement, Great Quest will undergo a name change and a 30-to-1 share consolidation. A bridge financing of up to $500,000 in Great Quest shares is also planned at a pre-consolidation price of 2.5 cents per share, subject to TSX Venture Exchange approval.
Additionally, Lotus will lend Great Quest US$300,000 at 10 percent annual interest, with the loan convertible into Great Quest shares under certain conditions. The agreement includes title opinions and NI 43-101 technical reports on both companies’ primary exploration assets. Trading in Great Quest shares has been halted since May 8, 2025, and will remain so until regulatory approval is granted.
The resulting board of directors will feature industry veterans from both companies, including Jed Richardson, Heye Daun, and Alan Friedman, combining extensive experience in resource development, corporate finance, and public markets.
Gold’s Expanding Role in a Changing Global Landscape
Frank Holmes wrote on June 23 that gold had continued to benefit from weakness in the U.S. dollar, which had declined approximately 10 percent against a basket of major currencies through mid-June. He noted that gold was trading above US$3,400 per ounce, only about US$100 below its all-time high. According to Holmes, central banks had maintained robust demand, with “official sector gold purchases exceed[ing] 1,000 tonnes in each of the last three years.” He cited a European Central Bank report stating that, for the first time, gold represented a larger share of global foreign exchange reserves (20 percent) than the euro (16 percent). UBS, in a note referenced in the same article, called the dollar “unattractive” and flagged further downside risks tied to the U.S. fiscal outlook.
Also on June 23, VBL discussed Michael Hartnett’s data on gold and oil performance during geopolitical conflict. According to that analysis, gold consistently delivered the strongest returns in the six months following major wartime or supply disruption events. VBL emphasized that this pattern had held over decades of data, reinforcing gold’s historical role as a resilient geopolitical hedge.
Matthew Piepenburg, writing on June 24, focused on gold’s growing prominence amid rising global debt levels and shifting financial systems. He stated that gold had “outperformed the S&P for more than 20 years” and described it as “THE central global strategic reserve asset.” Piepenburg argued that gold was “a superior store of value than fiat currencies and sovereign IOUs of all stripes,” citing growing central bank demand and institutional shifts as key indicators of its evolving role.
According to a June 27 report from Yahoo Personal Finance, gold futures opened at US$3,341.30 per ounce, marking a 45.5 percent increase from the same day in the previous year. While the article noted that short-term gold demand could fluctuate with stock market performance, it confirmed that gold, silver, and platinum were each up more than 22 percent in 2025. The report also highlighted continued retail interest in precious metals, driven by inflation concerns and broader macroeconomic uncertainty.
Looking Ahead: Key Projects and Exploration Potential
The combined entity will control a substantial exploration portfolio in Egypt’s Eastern Desert through Lotus Gold, which currently holds an estimated 11 exploration sectors spanning approximately 1,930 square kilometers. This includes areas with historical surface grades exceeding 3 percent copper and 0.8 grams per tonne (g/t) gold.
In addition to the Egyptian projects, Great Quest brings strong gold-focused exploration assets in Namibia, Morocco, and Mali. In Namibia, the Damara Gold Project includes the Khorixas, Omatjete, and Outjo targets, all of which show early indicators of significant gold or lithium mineralization. At Khorixas’s Belmont zone, recent rock chip sampling revealed gold values as high as 145.7 g/t, and drilling intercepted 6 meters at 6.85 g/t gold. Follow-up RC drilling is planned for several promising targets within this zone, as outlined in the company's investor presentation.
The K17 target within Khorixas features mineralization consistent with an Iron Oxide Copper Gold (IOCG) system, with rock chip samples returning up to 21 g/t gold, 16.25% copper, and 37.8 g/t silver. Work has included a 51 km deep-penetrating magnetotelluric survey and follow-up geophysics, with further drilling planned to investigate shallow conductors.
In Morocco, Great Quest is progressing on the Geulmin Gold Project, where historic and recent samples have returned grades up to 147 g/t gold. Meanwhile, in Mali, the Sanoukou Gold Project continues to show high-grade results from artisanal zones, with samples grading up to 24.9 g/t gold.
With exploration plans underway across multiple jurisdictions and a significantly expanded land position in Egypt, the resulting issuer is positioned to advance its African gold strategy and develop key assets in politically stable and mineral-rich regions.
Streetwise Ownership Overview*Ownership and Share Structure
According to Refinitiv, 13.38% of Great Quest is owned by management and insiders. Of them, the top holders are Jeddiah Kurt Richardson at 5.16%, Mohammed Bouhsane with 2.75, Mama Tpo at 1.82%, and John Allen Clarke with 1.66%.
The institution, Palos Managment Inc, holds 2.42%. The rest is retail.
Great Quest Gold has a market cap of CA$3.05 million, 144.38 million free float shares, and a 52 week range of CA$0.0200 - 0.0900.[NLINSERT
Important Disclosures:
- Great Quest Gold Ltd is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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